House Votes to Block Bush Plan to Cut Overtime Pay

Reversing course, the House recently voted 221-203 to block changes proposed by the Bush administration that would strip millions of workers of eligibility for overtime pay. The House narrowly defeated a similar amendment in July by a vote of 213-210, but this time around Democrats picked up eight new Republican votes. Currently, workers do not qualify for overtime if they meet three conditions. First, the employee must make more than $155 a week (or $170 for professionals) -- a pay rate that has remained unchanged since 1975. Second, the employee must make a salary, not an hourly wage. And third, the employee must perform work that is primarily “administrative,” “professional,” or “executive” in nature. On the positive side, the Bush administration is proposing to raise the pay rate to $425 a week, equivalent to an annual salary of $22,100. However, this modest increase is not indexed for inflation and thus will protect fewer workers over time. At the same time, the administration is also proposing to dramatically increase the number of workers who qualify as administrative, professional, or executive. For instance, the proposal would lower the education levels required to be considered administrative or professional. This would “deny overtime pay to paralegals, emergency medical technicians, licensed practical nurses, draftsmen, surveyors, and many others,” according to a study by the Economic Policy Institute. All told, more than eight million white-collar workers would be stripped of their right to overtime pay. In September 2003, the Senate approved an appropriations amendment, by a vote of 54 to 45, that would retain the pay rate increase but block the rest of the administration's proposal. The recently approved House motion, although non-binding, instructs House conferees to back the Senate amendment. President Bush, however, has threatened to veto the final bill if it includes the Senate amendment. “Both houses of Congress have now spoken -- and they have directed President Bush not to take away overtime pay from working families,” said John Sweeney, president of the AFL-CIO. Unfortunately, even after Congress' rebuke, the Bush administration appears determined to move forward with the changes. Following the House vote, Labor Secretary Elaine Chao reiterated her support for the overtime proposal, calling the changes “long overdue.”
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